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How a Type B Life Plan Community Can Offer Valuable Tax Deductions

A Life Plan Community’s Type B contract likeBrice Pointe’s can give you a right-sized, maintenance‑free lifestyle today while also offeringpotential tax advantages on a portion of your entrance and monthly fees that may qualify as prepaid medical expenses under current IRS rules. For manyretired adults in New Bern, this mix of lifestyle, long‑term security, and possible tax deductions is what makes an entrance fee community attractive.

What is a Life Plan Community?

A Life Plan Community (also called aContinuing Care Retirement Community) combines independent living with on‑site levels of care such as assisted living,memory care, rehabilitation, and skilled nursing. This “one‑campus model” means you move in while you are active and independent – enjoying community activities, a robust social lifeand convenient amenities – then access additional support later without leaving the campus.

At Brice Pointe in New Bern, residents willlive on a 70‑acre lakeside campus with maintenance‑free residences, life-easingservices, and access to a full continuum of care, so everyday life feels likean upgrade even as you quietly have a plan in place for the future. This model offers particular peace of mind for couples who want to remain close, even astheir care needs evolve over time.

How a Type B Contract Works

In a Type B contract (sometimes called,“modified”), you pay a one-time entrance fee plus an ongoing monthly servicefee that covers your residence, services and amenities, along with a definedamount or discount for future health care on campus. Typically, the entrancefee and monthly fees are lower than in a Type A Life Care contract, but youstill receive either a set number of days in higher levels of care free orongoing care at a discounted rate if your needs increase.

Brice Pointe’s financial model is a Type Bmodified contract paired with an 80% refundable entry fee, which means that ifyou move out or your estate settles your affairs, 80% of the original entrancefee is returned once your residence is resold. This approach allows you toavoid paying in full for care you may never need, while still securing priorityaccess and cost protections if your health changes. This model pairs well witha long‑term care insurancepolicy.

Feature	Type A (Life Care)	Type B (Modified – like Brice Pointe)	Type C (Fee‑for‑Service)
Entrance fee level	Highest; often highly refundable	Moderate; may include partial refund such as 80% back	Lowest entrance fee.
What you pay for care	Most future care included with stable monthly fees.	Limited days of higher care at no increase, or discounted rates thereafter.	Pay full market rates when care is needed.
Financial risk	Lowest medical‑cost risk, highest upfront cost.	Balanced upfront cost and shared risk.	Lowest upfront cost, highest future cost risk.

Tax advantages of a Type B community

For residents of Life Plan Communities, portions of the entrance fee and monthly service fees are often treated as aprepaid medical expense because the community commits to providing access to health‑related services overtime. Check with a tax consultant the deductible portions of Life PlanCommunity fees.

Communities typically calculate whatpercentage of their overall costs relate to health services and then reportthat percentage to residents each year, sometimes using a tax statement such asForm 1099‑MISC to show the amount that may qualify as a medical expense. Even if you are living independently andnot yet using assisted living or nursing care, you may still be able to claim this prepaid medical portion as part of your itemized deductions, subject toIRS rules and your individual situation.

Because tax rules change and everyone’s finances are different, it’s essential to review your options with a taxprofessional or financial advisor experienced in Life Plan Communities, ratherthan relying on general information as tax advice. They can help you understandhow an entrance fee and ongoing fees at Brice Pointe might interact with yourother medical expenses, retirement income, and long‑term care insurance.

The value of Brice Pointe, an entrance feecommunity

Entrance fee communities are designed to tradea one‑time investment for long‑term stability, predictability and peace of mind. By paying an entrance fee, many residents secure lower monthly costs thancomparable rental communities, along with guaranteed access to on‑site health services that might otherwise require multiple moves or higher out‑of‑pocket costs.

At Brice Pointe, the 80% refundable entrancefee structure helps you preserve your estate for your heirs while still giving you the everyday benefits of a worry-free, maintenance‑free lifestyle and the security of knowingthat higher levels of care are available on the same campus.

When you combine these lifestyle advantageswith the possibility that part of your entrance and monthly fees may count toward a medical expense tax deduction, a Type B contract can be a strategicway to manage both your quality of life and your long‑term financial plan throughout retirement.